The SEC Publishes Memorandum From Meeting Regarding The SolidX, and VanEck BTC ETF Proposal This Week-BTC

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According to reports, the United States Securities and Exchange Commission (SEC) recently published a memorandum following a meeting that deliberated on the issue regarding the proposal from VanEck and SolidX about the Bitcoin (BTC) exchange-traded-fund (ETF) endeavor.

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The two firms involved in the process including VanEck and SolidX are shifting into the crypto space. According to the SEC’s memorandum, VanEck is an investment management firm operating from New York and is handling assets worth $46 billion. While SolidX according to the document is a blockchain software development provider as well as financial services.

The SEC’s Memorandum Includes a Summary of The History of The Firms With The Financial Regulator

The document which was prepared by the SEC on Oct. 9, shows that Elad L. Roisman, the commissioner of the SEC and his counsels Matthew Estabrook, Dean Conway and Christina Thomas met with officials representing SolidX, VanEck and Chicago Board Options Exchange.

The memorandum a prepared by the regulatory body presents a summary of the history of the applicants with the SEC. SolidX had filed initially for the listing of Bitcoin ETF on NYSE (the New York Stock Exchange) as recently as March 2016, but the SEC rejected SolidX ‘s application as of March 2017.

The Physically-backed Bitcoin ETF is Priced at 25 Per Shaw or $200,000

In June 2018, VanEck collarborated with SolidX to request for a physically-supported Bitcoin ETF that will be listed on CBOE’s BZX Equities Exchange. The Securities and Exchange Commission hasn’t reached a decision regarding this issue as the deliberation was postponed back in August.

The pricing format proposed for each share of a physically-backed Bitcoin ETF is $200,000 (that is 25 bitcoin per share). This move will prove to be a bold step in the right direction regarding explicitly bidding to stay focused on institutional investors rather than retail investors.

The arguments of both parties involved in the process are outlined in the memorandum. These arguments will comprehensively address the grounds given by the US regulator following its decision to disapprove SolidX’s previous ETF application in 2017.

There is perceived failure which is understandably consistent with the Securities and Exchange Commission Act Section 6(b)(5), which focuses on “preventing, fraudulent and manipulative practices.”

The SEC as at that time stated that, ETPs (commodity-trust exchange-traded products) have been approved under the context of “a significant, well-established, regulated markets for futures.” The SEC’s memorandum counters this ground, and going on to open multiple Exchange Commission (CFTC) and Commodity Futures regulated Bitcoin (BTC) derivatives markets are now in existence for Bitcoin, much more on stalwart U.S. exchanges CME and CBOE.

The SEC Also Rejected Nine Other Applications Citing Lack of Regulation as a Reason

According to the report as of August this year, the SEC has rejected nine seperate applications sent to the regulator. The applications consisted of bids to list and trade different Bitcoin ETFs from three applicants. VanEck, SolidX and CBOE now have to wait for a final decision from the SEC following its preparation of the memorandum.

 

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